COV cannot be removed, MR KBW said

[Apvman]

  On 8/11/2011 at 9:09 AM, Joseph22 said:

I heard from my parents, that was what happen in the past.

 

that was before ruling comes in but now it causes another set of problem..

 

so the best way is to control COV .. I dont see how the COV can be controlled... If government can control how much ERP to charge u everytime u pass the gantry... nothing is impossible...

 

Now government just sweeping the problem under the map n leave to market force to determine... Ya lah.. we can afford now.. Your future kids.. can they afford ? Do u want them to bunk in with you as long as the flats remains high?

 

For those of course.. no need the flat urgently n got $$ to buy.. no problem.... for us.. I wipe table one... how to save $$ for $50k cov :P

[Joseph22]

  On 8/11/2011 at 9:34 AM, Darryn said:

But selling price of resale flats has everything to do with BTO price and how many are released...so it's an insidious loop.

 

if you price the BTO at an attractive price that ppl are willing to wait. then the price of resale will slow down or even drop.

[Dirtbike]

  On 8/11/2011 at 9:40 AM, Joseph22 said:

First you need to understand this.

 

my area, initial selling price for 5 room was 380K.

when a BTO near (about 2KM away) come out selling 5 room at 350K.

(jurong west)

 

the price of resale 5 room automatically become min 400K.

 

why is that so? simple math. if BTO is 350K without the 40K subsidise. then with subsidise, resale flat will be at least 390K. Now resale flat dont have to wait. so typically ppl will put another 20K ontop of the 40K.. making it 420K on advertisement.

 

hence different is only say 70K different, ppl are more willing to buy resales as the valuation is likely to be around 380 to 400K.

 

now, let say, instead of 350K for 5 room. it is selling at 200K for 5 room. what do you think will happen???

 

ppl cant mark up so high anymore as 200K different is worth the wait for 3 years.

 

then ppl will be offering less and less. slowly market price will drop and valuation will drop.

 

Lolz...i think u lost urself...previously u said COV will drop...i said COV wont drop...

its valuation that will drop...than u corrected me asking me if i know how valuation is being calculated...

 

i think ur example just again confirm my statement...

[Tarzan666]

  On 8/11/2011 at 9:15 AM, Mdfaz said:

Valuation of a 5 rm in tampines is about $450k to $495k, depending on location and size.. I just bought one, valuation $495k and i paid the cov of $55k, total $550k. People will say my wife and i are crazy but it is for a mature estate (loads of amneties, schools for kids etc) and near her parents.

 

But if hdb could have controlled valuation prices.. My 5 rm would have beeen cheaper.

 

bro which area u buy? 550k??

My tamp EM 450k near the round market....

[Mrmilktooth]

i know of a friend who bought his 5 rm at JW for 220K maybe 3-4 yrs ago when the lehman saga came..

 

now he telling me his flat valuation is 500K+!!! i f*** dont believe it u know... but its true..

[Joseph22]

  On 8/11/2011 at 9:42 AM, Apvman said:

that was before ruling comes in but now it causes another set of problem..

 

so the best way is to control COV .. I dont see how the COV can be controlled... If government can control how much ERP to charge u everytime u pass the gantry... nothing is impossible...

 

Now government just sweeping the problem under the map n leave to market force to determine... Ya lah.. we can afford now.. Your future kids.. can they afford ? Do u want them to bunk in with you as long as the flats remains high?

 

For those of course.. no need the flat urgently n got $$ to buy.. no problem.... for us.. I wipe table one... how to save $$ for $50k cov :P

 

now if you remove the COV and it become undertable money. how different is it from inital problem??

 

you will be complaining gahmen doing nothing to curb illegal selling. then when they remove it, your turn to sell house, you will complain government not supportive of free market.

 

its a vicous cycle. like i say, reduce BTO price. everything will be better.

[Dirtbike]

  On 8/11/2011 at 9:42 AM, Apvman said:

that was before ruling comes in but now it causes another set of problem..

 

so the best way is to control COV .. I dont see how the COV can be controlled... If government can control how much ERP to charge u everytime u pass the gantry... nothing is impossible...

 

Now government just sweeping the problem under the map n leave to market force to determine... Ya lah.. we can afford now.. Your future kids.. can they afford ? Do u want them to bunk in with you as long as the flats remains high?

 

For those of course.. no need the flat urgently n got $$ to buy.. no problem.... for us.. I wipe table one... how to save $$ for $50k cov :P

 

so let me ask u...if u got 3 buyers looking at ur unit...how u decide who to sell to?

1st come 1st serve? pretty wife? Lolz...

[Jrage]

  On 8/11/2011 at 9:15 AM, Mdfaz said:

Valuation of a 5 rm in tampines is about $450k to $495k, depending on location and size.. I just bought one, valuation $495k and i paid the cov of $55k, total $550k. People will say my wife and i are crazy but it is for a mature estate (loads of amneties, schools for kids etc) and near her parents.

 

But if hdb could have controlled valuation prices.. My 5 rm would have beeen cheaper.

 

So surpirse to see so many ppl dun know how valuation works. Valuation is based on past transactions.

What figure do you want hdb to indicate ? On what basis? It more laughable when 1 bro ask for cov to be part of the valuation . Obviously something is wring with their intelligences.that's why end up buy house ex ex . Ha ha ha

Edited August 11, 2011 by Jrage

[Joseph22]

  On 8/11/2011 at 9:43 AM, Dirtbike said:

Lolz...i think u lost urself...previously u said COV will drop...i said COV wont drop...

its valuation that will drop...than u corrected me asking me if i know how valuation is being calculated...

 

i think ur example just again confirm my statement...

valuation follow last few months resale price. if your COV dont drop Valuation wont drop, unless there is totally no transaction for a few months the valuation of resale flat wont drop.

 

 

BTO price is not in consideration of resale price.

[Apvman]

  On 8/11/2011 at 9:44 AM, Joseph22 said:

now if you remove the COV and it become undertable money. how different is it from inital problem??

 

you will be complaining gahmen doing nothing to curb illegal selling. then when they remove it, your turn to sell house, you will complain government not supportive of free market.

 

its a vicous cycle. like i say, reduce BTO price. everything will be better.

 

Its the cash potion that will kill most pple bro... CPF as long as you n your wife are working... should not have problems paying off the loan leh...

 

I never say government should do away with the COV... government can control the COV range with rules n fines... Our government very gd at that what...

 

The valuation is done by HDB authorised party...plus controlled COV specified by government depending on the type of HDB u owned... y not? Seller happy and owner happy ... that prevents escalation of high COVs....

 

How many will fork out 50 to 100k for COV out of your savings if both of you are getting married? How much to get marry .. u know I know.. unless u tell me .... no easy now hor unless u marry foreign chai bo....

[Joseph22]

  On 8/11/2011 at 9:50 AM, Jrage said:

So surpirse to see so many ppl dun know how valuation works. Valuation is based on past transactions.

What figure do you want hdb to indicate ? On what basis? It more laugh when 1 bro ask for cog to be part of the valuation . Obviously something is wring with their intelligences.that's why end up buy house ex ex . Ha ha ha

 

yeah.. i am deeply surprise too.. the data can be easily obtian too. but most dont bother to check it out.

[Joseph22]

  On 8/11/2011 at 9:52 AM, Apvman said:

Its the cash potion that will kill most pple bro... CPF as long as you n your wife are working... should not have problems paying off the loan leh...

 

I never say government should do away with the COV... government can control the COV range with rules n fines... Our government very gd at that what...

 

The valuation is done by HDB authorised party...plus controlled COV specified by government depending on the type of HDB u owned... y not? Seller happy and owner happy ... that prevents escalation of high COVs....

 

How many will fork out 50 to 100k for COV out of your savings if both of you are getting married? How much to get marry .. u know I know.. unless u tell me .... no easy now hor unless u marry foreign chai bo....

 

then it will be COV + undertable money. in hot area like say, TPY and Outram park.

 

how hard it is to understand??

[Mustank]

TS needs to understand that there are times he cannot afford some things in life. Sometimes it is not so easy to let go.

[Unfair]

  On 8/11/2011 at 9:35 AM, Joseph22 said:

FYI

 

HDB valuator are not the same as private Valuator from banks.

 

HDB valuator are license by HDB. and they cannot deivate too far from HDB given data.

 

Thats provided you are taking a HDB Loan.

 

ROFL, HDB data. Who is the one who quoted us >$300k for a flat in the first place.

 

[Joseph22]

  On 8/11/2011 at 10:16 AM, Unfair said:

Thats provided you are taking a HDB Loan.

 

ROFL, HDB data. Who is the one who quoted us >$300k for a flat in the first place.

 

 

As long as its buying HDB flat you need to use their valuator.

 

do note that HDB valuator and private are the same ppl. the only different is HDB is more stringent with the valuation price.

[Lala81]

I have to agree with KBW on this, COV is here to stay.

Making COV official is better than it remaining hidden.

 

High COV has affected many of us but we have to be objective, the problem is caused by increased demand for property by PR, undersupply by stupid MBT, low interest rates and the improving economy of the past yrs.

 

me and my fiancee baulked at paying high COV for resale flats in 2010, so we're still waiting for BTO.

Now im looking for rental place while awaiting my BTO.

 

As a potential home owner, the highest bidder should win.

 

The real issues are as above and the flawed system of valuation. Most banks just anyhow value the surrounding area. It's a self re-inforcing system.

 

 

 

[Lala81]

In reply to APVman, the whole idea of a market is that it regulates itself most of the time.

 

If COV is 100k, pple need to wake up their idea and don't buy lah!

 

The structural issues are elsewhere. not in COV.

 

 

[Payame]

  On 8/11/2011 at 8:10 AM, Ilmw said:

If a bowl of fish ball noodles is worth $2.50, but because there is a long queue for it, do we pay COV over and above the $2.50 to get it?

 

What is valuation? If something is worth $x, it is worth $x. Period.

COV, by definition has no logic.

 

If something has too much demand, has a long queue such that COV comes into the picture, then the problem is the supplier.

 

 

Comparison is a bit off - in each case, there is only one bowl of fish ball noodles on sale, unless you go to another stall.